Malden Mills Files For Chapter 11

Law360 (January 10, 2007, 12:00 AM EST) -- Textiles firm Malden Mills Industries Inc., which invented fleece fabric in the 1970s, filed for Chapter 11 bankruptcy protection Wednesday for the second time in five years, this time seeking court approval to sell the company to a turnaround firm.

Malden’s petition, filed in Delaware bankruptcy court, outlines a proposed sale of the company’s assets to Boston-based Gordon Brothers Group LLC for $44 million in cash plus the assumption of liabilities.

The company also filed a motion to tap a $10 million debtor-in-possession loan from GE...